In one sentence
A lender's temporary agreement to withhold enforcing its rights, giving a struggling borrower room without permanently changing the loan.
The longer version
Forbearance pauses enforcement for a defined period on defined conditions, often while a longer-term workout is negotiated. It is documented carefully, because it can waive rights if drafted loosely.
For servicers, forbearance agreements and their conditions become tracked items: milestones, financial reporting, and deadlines that determine whether the loan recovers or moves to workout.
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